Using a sample of equities listed on the exchanges of 22 developed countries, we find that equity returns on customer industries lead the returns of supplier industries. This customer-supplier lead-lag effect is economically significant and is more pronounced for small suppliers and for supplier...

The authors found strong return predictive power for measures related to asset growth in the MSCI World Universe. The predictive power applies to abnormal returns for up to four years after the initial measurement period, is particularly strong for two-year total asset growth rates, and is...

We study the return predictive power of asset growth related measures in the MSCI World Universe, which includes all the developed markets. We find strong return predictive power of asset growth related measures in these markets. This power is particularly stronger for two-year total asset...

We use a unique dataset of product warranty offerings by firms to investigate the effect of a firm's warranty reserve levels on its capital structure decisions. Our sample consists of firms that (i) offer explicit warranties, (ii) likely offer implicit product warranties, and (iii) are in...

We examine the determinants and consequences of earnings management by firms in the context of their relationships with suppliers and customers. We find that industry-level proxies for relationship-specific investments by suppliers/customers are positively associated with the magnitude of...

We investigate the link between a firm's leverage and the characteristics of its suppliers and customers. First, we test the hypothesis that firms use decreased leverage as a commitment mechanism to induce suppliers/customers to undertake relationship-specific investments. We find that the...

We examine the wealth effects of horizontal takeovers on rivals of the merging firms, and on firms in the takeover industry's supplier and customer industries. Inconsistent with the collusion and buyer power motives, we find significant positive abnormal returns to rivals, suppliers, and...

We examine how industry competition affects firms' choice of short-term debt. We find that the percentage of short-term debt is positively related to industry concentration at low levels of concentration, and inversely related to industry concentration at higher levels of concentration. This...